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A and B shared profits in (3:2). After admission the new ratio is (7:5:3). What is the sacrificing ratio of A and B?

Answer and explanation

Correct answer: (2:1)

Direct answer: Option A, 2:1, is correct. A and B originally share in 3:2, so their total is 5 parts: A’s old share is 3/5 = 9/15 and B’s old share is 2/5 = 6/15. After admission, the new ratio is 7:5:3, whose total is 15. Thus A’s new share is 7/15 and B’s new share is 5/15. A sacrifices 9/15 − 7/15 = 2/15. B sacrifices 6/15 − 5/15 = 1/15. The sacrificing ratio is therefore 2/15:1/15 = 2:1. Option A works. Option B repeats the old profit-sharing ratio, but sacrifice is based on the difference between old and new shares. Option C uses the new shares rather than the amounts surrendered. Option D reverses the calculated sacrifice amounts. Check also that C receives 3/15 and the final shares total 15/15. Memory cue: put old and new shares over a common denominator, subtract, then simplify the sacrifices.

Related tags

Sacrificing RatioOld RatioNew Ratio

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